Planet Fitness 2025 Q2 Earnings Strong Performance as Net Income Surges 18.2%

Planet Fitness reported second-quarter earnings that significantly exceeded expectations, with net income rising 18.2% year-over-year to $58.3 million, or $0.69 per diluted share. The company reaffirmed its full-year guidance, maintaining its optimism for 2025 despite near-term economic challenges.

Revenue
Total revenue surged by 13.3% year-over-year to $340.88 million in Q2 2025. Each of the company’s core business segments contributed to the growth. Franchise segment revenue reached $119.66 million, driven by higher royalty income from increased same-club sales. Corporate-owned clubs generated $138.99 million in revenue, bolstered by sales growth and new club openings. Meanwhile, the Equipment segment saw a robust 21.5% increase, reaching $82.23 million, thanks to heightened demand from franchisees.

Earnings/Net Income
The company’s earnings reflected strong performance, with EPS rising 23.2% to $0.69 in Q2 2025 compared to $0.56 in the prior year. Net income also saw a 18.2% increase to $58.3 million from $49.3 million. This consistent profitability over 11 years highlights the company’s stable business model and operational efficiency.

Price Action
In the immediate aftermath of the earnings report, Planet Fitness’s stock price showed mixed short-term movement. Shares climbed 4.20% during the latest trading day but fell 4.42% for the week and dipped 0.73% month-to-date.

Post-Earnings Price Action Review
A historical strategy of buying PLNT shares after the quarterly earnings report and holding for 30 days yielded a 16.60% return over the past three years, though this trailed the broader market’s 47.11% return. The strategy had a Sharpe ratio of 0.22, indicating moderate risk-adjusted returns, and no maximum drawdown was recorded, suggesting it avoided significant losses. However, the volatility of the strategy was high, at 24.36%, indicating considerable price fluctuations over the 30-day period.

CEO Commentary
Colleen Keating, CEO of Planet Fitness, highlighted the company’s 10-year anniversary as a public company and emphasized its growth in membership, club expansion, and financial results. She pointed to the success of the High School Summer Pass program and the sale of eight California corporate clubs as positive indicators for future growth. Keating remains confident in Planet Fitness’s positioning in the health and wellness market.

Guidance
Planet Fitness maintained its 2025 full-year outlook, with revenue expected to grow in the 10% range and adjusted net income projected to increase between 8% and 9%. The company also reiterated its plans for 160 to 170 new club openings and 6% same-club sales growth for the year. Adjusted EBITDA is expected to grow in the 10% range, and shares are forecasted to see a diluted EPS increase of 11% to 12%.

Additional News
In a notable move, Planet Fitness announced a binding agreement to sell eight corporate-owned clubs in California to a franchisee, aligning with its asset-light strategy and capital recycling efforts. This transaction is expected to close in Q3 2025. Additionally, the company provided updated 2025 guidance, narrowing its expectations for new equipment placements and club openings. These actions and strategic decisions underline Planet Fitness’s continued focus on profitability and long-term growth.